A meeting of key cabinet ministers is to take place on Monday at the
finance ministry, ahead of the arrival in Athens later the same day of
the European Commission, European Central Bank (ECB) and International
Monetary Fund (IMF) troika for the resumption of negotiations with the
Greek government.

Those attending the noon meeting with the government's economic team will
include the new ministers joining the cabinet after last week's reshuffle
that will deal directly with the troika. They include: Administrative
Reform and e-Governance Minister Kyriakos Mitsotakis, Interior Minister
Yiannis Mihelakis, Health Minister Adonis Georgiadis and the two deputy
health ministers, Antonis Bezas and Zeta Makri.

A meeting between Finance Minister Yannis Stournaras and troika
representatives will follow at 5:00 p.m. and troika members will then
meet Mitsotakis at 7:30 p.m. in the evening.

The key issue in the new round of negotiations will be that of the
12,500 public-sector employees that are due to be suspended from duty on
lower pay (pending a possible transfer if a vacancy arises), since this
has already been linked to the 2.8-billion-euro loan tranche already
disbursed.

Also high on the troika's agenda are the actions needed to plug a budget
'hole' at Greece's national health service provider EOPYY, which is
largely responsible for a new fiscal 'gap' in 2013-2014. Prior to last
week's reshuffle, a special troika team had been set up at the health
ministry to examine equivalent measures proposed by the Greek side to
compensate for the shortfall.

With regard to taxation, the heads of the troika mission continue to
dispute the effectiveness of the single property tax due to go into
effect from 2014, arguing that the system is too complex and that tax
offices will be unable to collect, and want the previous system with
collection of taxes via electricity bills to continue. In addition,
they are asking that the installments for payment of the Emergency
Special Property Surtax be reduced from five to four in 2013. If the
five installments remain, the last will be collected in March 2014 or
later and create an additional shortfall of 400 million euros in the
2013 budget. Finally, Greece's creditors are also asking for a review
of the various tax exemptions currently in force.

The government's aim once negotiations resume is to complete the mission's
review of Memorandum requirements and receive the European Commission's
approval before the last third of July. In this case, the path will be
open for the disbursement of the next bailout tranche of 8.1 billion
euros, which will be paid in "installments" based on implementation of
prior actions. Simultaneously, the IMF will be able to convene in order
to approve the 1.8-billion-euro loan tranche to be given by the IMF.

Otherwise, if the IMF discerns a 'gap' in Greek finances for 2013-2014
in August, it will be forced by its charter to suspend aid to Greece
and will have to call for another 'haircut' of Greek debt, in spite of
Germany's disagreement.

Prime Minister Antonis Samaras' "efforts to justify the massive failure
of his policy and sell another 'success story' is obviously awkward,"
the main opposition Radical Left Coalition (SYRIZA) charged on Sunday.

In a statement criticising Samaras' closing speech at his party's annual
congress in Paleo Faliro, SYRIZA said, "He cannot convince anyone,
however, as much as the interest-ruled mass media support this futile
effort."

The party was particularly critical of what it said were government
leaders "presenting themselves as national saviours at the same time
they are preparing for new measures that will deal the fatal blow to
society and the economy."

The ruling coalition partners, ND's Samaras and PASOK's Evangelos
Venizelos, government's vice president, "cannot balance together for
long on the rotten chair of a rule than unites them - their days are
numbered," SYRIZA warned.